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Last Updated: Thursday, 23 June, 2005, 10:11 GMT 11:11 UK
MyTravel recovery 'on schedule'
Holidaymakers on the beach
MyTravel is starting to see a turnaround in its fortunes
The head of tour company MyTravel has said the firm's turnaround is "on schedule" after it reported a 36% reduction in half-year losses.

The firm, which secured a life-saving 800m debt-for-equity swap last year, made a pre-tax loss of 114.1m ($208m) in the six months to 30 April.

MyTravel said the improvement was down to an upturn in bookings for the 2005 summer season.

This offset the financial impact of the tsunami and higher fuel costs.

MyTravel said the Indian Ocean tsunami on Boxing Day cost it a total of 11.7m in cancelled bookings and flights to get those affected back home.

It added that the high level of fuel prices cost it an extra 17.5m during the six month period.

For the summer 2005 season, the firm has seen bookings in northern Europe rise by 7%, and by 2% in North America.

Hotel sales

MyTravel's recovery is on schedule
Peter McHugh, MyTravel chief executive

MyTravel, which was previously known as Airtours, also announced it is disposing of its interests in two hotel groups.

It is selling Spanish hotel business Hotetur, in which it holds a 50% stake, to fellow Spanish firm Teinver for 19.3m.

MyTravel is also selling its 50% holding in Tenerife Sol, which owns three hotels in the Canary Islands for 19.2m.

"Overall, while we continue to push for improvements in our UK performance, MyTravel's recovery is on schedule," said MyTravel chief executive Peter McHugh.

"I am confident of our continued progress."

In addition to last year's debt-for-equity swap, MyTravel also reduced costs by cutting back excess capacity and making redundancies.

Its turnover for the six months to 30 April of this year was 1.1bn, down from 1.3bn for the same period in 2004.

MyTravel shares were up 3% in morning trading in London on Thursday.

MyTravel secures debt rescue deal
20 Dec 04 |  Business
MyTravel nears rescue agreement
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MyTravel twists bondholders' arms
03 Nov 04 |  Business
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13 Oct 04 |  Business
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